Best Factoring Companies
FactoringClub Awards
FactoringClub evaluates contract terms, customer service and company leadership from more than 125 factoring companies. We save you the time having to research and look for a good factoring company.
Low startup fees
Little or no startup fee. No application fee.
Short-term contracts
No-term, monthly, or 90-day contract. No lock-in!
No minimum fees
Typically, no monthly minimum fee for low volume.
“You can’t go wrong choosing a factoring company that doesn’t charge a startup fee and offers a short-term contract.”
Top Factoring Companies
Factoring rates and contract terms
Factoring rates
Factoring companies offer rates as low as 1% for the largest businesses that generate millions of dollars in revenue each month. Smaller businesses can expect to pay anywhere between 2% to 4% of the invoice amount.
Trucking factoring companies offer rates as low as 1% for the largest carriers, while owner-operators and small truck companies can expect to pay at least 2.5% to 3% of their freight bills.
Advance rates
Factoring companies don't advance the full amount of your invoices. They hold a reserve as an allowance for any unexpected bad debts or short-falls. Advance rates are typically 75 to 90%.
Freight and trucking advance rates are higher, typically 90% or more. Some truck factoring companies offer fully-funded or 100% advance rates, in which they only deduct their factoring fees from your cash advances.
Contract terms
Contract lengths vary from one factoring company to another. Lengths range from 1 month to 24 months, with some factoring companies offering a no-term contract that lets you cancel at any time.
Some factoring companies charge monthly minimum fees, so that you pay factoring costs, even if you don't factor the minimum amount stated in the contract.
Some factoring companies offer the option of non-recourse factoring which is a credit guarantee that protects you from customer non-payment due to credit issues. Non-recourse factoring usually costs more.
Company Profiles
TAB Bank is a full-service bank in the Salt Lake City area that offers the security of a bank with the power and flexibility of an invoice factoring company. They offer a no-term contract with no minimum fees and no startup fee.
Mazon Associates has delivered factoring services to more than a thousand businesses since 1976. They have a reputation for caring, friendly and professional customer service. They offer a monthly contract with no minimums and no startup fee.
Porter Billing Services is the freight factoring division of Porter Capital. They provide 2-hour approvals with the lowest rates in the industry. They offer a monthly contract with 100% advance rates (less fees) and no startup fee.
FSW Funding has been delivering invoice factoring to businesses all across the country since 2001. You get personal one-on-one attention with caring experienced staff. They provide quick approvals and a no-term contract with no minimum fees.
Provident Commercial Finance is a factoring company that provides factoring services for all business types. You'll get prompt and courteous customer service. They offer a no-term contract with no minimum fees and no startup fee.
Porter Capital provides receivables factoring for companies for businesses across the country. Porter has been in business since 1991 and charges rates as low as 0.75% and advance rates as high as 90%. They offer monthly contracts with no startup fee.
Orange Commercial Credit has been providing factoring services since 1979. You get a professional dedicated account manager, online credit services, and the highest advance rates in the industry. They offer a 90-day contract with no minimum fees and no startup fee.
CoreFund Capital is a factoring company in the Dallas / Fort Worth area that specializes in freight factoring. They provide extended service hours on weekdays and Saturdays. They offer a 90-day contract with no minimums and no startup fee.
Handle.com is a construction services company that specializes in construction factoring. They provide a quick and easy approval process. They also offer purchase order financing, material trade credit, and mechanic's lien purchasing.
